[Federal Register Volume 82, Number 4 (Friday, January 6, 2017)]
[Notices]
[Pages 1689-1690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00015]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Dane Francisco Delgado, Inmate Number: 60114-
379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837; 
Order Denying Export Privileges

    On November 4, 2014, in the U.S. District Court for the Southern 
District of Texas, Dane Francisco Delgado (``Delgado''), was convicted 
of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Delgado knowingly and willfully 
conspired with persons known and unknown to export, furnish, and cause 
to be exported from the United States to Mexico defense articles 
designated on the United States Munitions List without having first 
obtained from the Department of State a license or written 
authorization for such export. Delgado was sentenced to 60 months in 
prison, three years of supervised release, and a $100 assessment.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the Export 
Administration Act (``EAA''), the EAR, or any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal 
Security Act of 1950 (50

[[Page 1690]]

U.S.C. 783(b)), or section 38 of the Arms Export Control Act (22 U.S.C. 
2778).'' 15 CFR 766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. 
4610(h). The denial of export privileges under this provision may be 
for a period of up to 10 years from the date of the conviction. 15 CFR 
766.25(d); see also 50 U.S.C. 4610(h). In addition, Section 750.8 of 
the Regulations states that the Bureau of Industry and Security's 
Office of Exporter Services may revoke any Bureau of Industry and 
Security (``BIS'') licenses previously issued in which the person had 
an interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2016). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at http://uscode.house.gov)). Since 
August 21, 2001, the Act has been in lapse and the President, 
through Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 
783 (2002)), which has been extended by successive Presidential 
Notices, the most recent being that of August 4, 2016 (81 FR 52587 
(Aug. 8, 2016)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701, et seq. 
(2006 & Supp. IV 2010)).
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    BIS has received notice of Delgado's conviction for violating the 
AECA, and has provided notice and an opportunity for Delgado to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has received a submission from Delgado.
    Based upon my review and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Delgado's export privileges under the Regulations 
for a period of 10 years from the date of Delgado's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Delgado had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until November 4, 2024, Dane 
Francisco Delgado, with a last known address of Inmate Number: 60114-
379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837, and 
when acting for or on his behalf, his successors, assigns, employees, 
agents or representatives (the ``Denied Person''), may not, directly or 
indirectly, participate in any way in any transaction involving any 
commodity, software or technology (hereinafter collectively referred to 
as ``item'') exported or to be exported from the United States that is 
subject to the Regulations, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the Regulations, or in any other 
activity subject to the Regulations; or
    C. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    Second, no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Denied Person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the Denied Person acquires 
or attempts to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the Denied Person in the United States any item 
subject to the Regulations with knowledge or reason to know that the 
item will be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the 
Regulations that has been or will be exported from the United States 
and which is owned, possessed or controlled by the Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the Denied Person if such service involves the use of any 
item subject to the Regulations that has been or will be exported from 
the United States. For purposes of this paragraph, servicing means 
installation, maintenance, repair, modification or testing.
    Third, after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any other person, firm, corporation, 
or business organization related to Delgado by ownership, control, 
position of responsibility, affiliation, or other connection in the 
conduct of trade or business may also be made subject to the provisions 
of this Order in order to prevent evasion of this Order.
    Fourth, in accordance with Part 756 of the Regulations, Delgado may 
file an appeal of this Order with the Under Secretary of Commerce for 
Industry and Security. The appeal must be filed within 45 days from the 
date of this Order and must comply with the provisions of Part 756 of 
the Regulations.
    Fifth, a copy of this Order shall be delivered to the Delgado. This 
Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until November 4, 2024.

    Issued this 29th day of December, 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-00015 Filed 1-5-17; 8:45 am]
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